Corporate world falls for Bracks

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When Neil Coulson sat down to write his wish list for Victorian business shortly before Christmas last year, he did not expect to get a late Christmas present worth $1.9 billion.

He sent the list, better known as the Victorian Employers Chamber of Commerce and Industry budget submission, to Victorian Treasurer John Brumby expecting a more modest response. But the VECCI chief got a gift-wrapped $1.9 billion package from the State Government last week that blew his socks off. Surprise $1 billion land tax cuts and $900 million cuts to WorkCover premiums over five years were the highlights.

Usually lobby groups might get just a couple of items granted from their budget submissions, and some years none at all. But the Bracks team didn't stop at $1.9 billion.

An $11 million export program, $14.9 million for channel deepening, and cuts to business red tape were also unveiled by Premier Steve Bracks.

In reply, business groups like VECCI and the Australian Industry Group have given the Government a large tick, one of the biggest delivered by business to the Government since it came to power.

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Business groups may be overjoyed by the economic plan, but the statement leaves 1.9 billion reasons why next week's state budget will be "family friendly", as Mr Bracks has pledged.

The historic ideological gulf between Liberal and Labor has been long closed, but Labor cannot give business billions of dollars of help without also helping its traditional allies.

Unions and welfare groups are now in a stronger position to ask for their slice of the pie. Expect to see the Government include cheaper public transport concession cards for students, help for families and new health spending in next week's budget.

Mr Bracks' spokeswoman said the "state budget will be positive for business, and for families and communities".

Unions and welfare groups are now in a stronger position to ask for their slice of the pie.

Mr Coulson's success with the VECCI submission should be used as a game plan by all lobby groups asking for government help, because virtually everything it asked for it got. Land tax relief, WorkCover premium cuts and a new convention centre were all requested by VECCI - and all were duly delivered.

The land tax cuts exceeded what VECCI asked for. It sought an increase in the land tax threshold and a fairer system, but it never explicitly called for "land tax cuts" in a diplomatically worded submission.

The Government's economic statement shows how friendly the modern Labor Party is with business, how concerned it is about economic growth and how closely its fortunes are tied to views on economic management.

But it wasn't necessary to be at the launch of the "Victoria: Leading The Way" statement, on the 46th floor of the ANZ tower in Collins Street last Tuesday, to witness the love affair between the Bracks Government and the corporate world. A week earlier it was on display on the factory floor at the Toyota plant in Altona.

Mr Bracks cheerily sat through about one hour of Toyota razzamatazz including jokes by MC Glenn Ridge - some of them funny - music, dancing girls and other highlights as the car maker marked the manufacture of its two millionth car in Victoria.

But when the hoopla was over, there was more celebrating. Standing alongside Toyota's Australian president Ted Okada, Mr Bracks easily out-leapt the car chief in an "Oh, What a Feeling" Toyota jump-off.

Quizzed last week in the aftermath of the economic statement, VECCI chief Mr Coulson said the relationship between Government and the Victorian business community was "quite productive".

"I think they have demonstrated a capacity to listen and consult," he said.

Mr Coulson said VECCI discussed business issues with Mr Bracks, Mr Brumby and other ministers through regular formal meetings, at VECCI functions, and from time to time in the lead-up to a budget.

The communication channels don't stop there. Mr Coulson also sits on the WorkCover advisory committee and the Victorian learning and employment skills committee.

Australian Industry Group Victorian director Timothy Piper said the new initiatives for business showed the Government had been listening to issues raised by business "and recognising that the economy needed a bit of impetus and that business needed impetus, not only to stay in Victoria, but to be attracted back".

Mr Piper said his organisation had a good relationship with Mr Bracks. "We don't have a problem getting our message to the Premier's office," he said.

Asked about the Government's relationship with business, a spokeswoman for Mr Bracks said: "The relationship between the Bracks Government and the Victorian business community is very good - the responses to the economic statement speak for themselves".

The Government had a "healthy relationship" with business, as should any government. She said the Premier or his representatives met business leaders on a regular basis.

"There are scheduled meetings as well as informal ones," the spokeswoman said.

Despite the solid relationship between Mr Brumby, Mr Bracks and the business world, Mr Coulson said VECCI would not shy away from robust discussions in future with government if concerns arose.

Perhaps a mark of the comfortable relationship between business and the Government is the decision in this term of office to cease regular breakfasts hosted by Mr Bracks in Treasury Place for Melbourne's business heavyweights. The three-monthly breakfasts may have stopped but the close relationship seems set to continue.